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SWOT ANALYSIS

GROUP 3 ACN3

Company Profile

‡ John Clarkin. . a native of Minnesota. ‡ He became president and general manager of Pepsi-Cola Bottling Company of the Philippine Islands Ltd. USA who came with the American forces at the close of World War II. upon acquiring a franchise to bottle Pepsi in the Philippines on October 16. 1946. brought Pepsi-Cola to the Philippines.

.S. Pepsi Philippines became a Filipino corporation when the Escaler clan led Pepsi-Cola Distributors of the Philippines Inc. ‡ In 1985.‡ For one year. acquired its franchising and bottling rights. until the first bottling plant was put up in Quezon City in 1947. Pepsi was imported from the U.

.‡ Premier Beverages led by Luis Lorenzo Sr. and the AFP-RSBS assumed majority ownership of the firm in 1989. (PCPPI). and gave it a new name: Pepsi Cola Products Philippines Inc.

investors and employees of the Philippines. for every drinking occasion. we continuously delight them by offering quality beverages at best value.Mission and Vision We are the beverage company of choice . trade partners. .preferred by consumers. As such.

. providing healthy financial rewards to our shareholders and opportunities for growth and enrichment to our business partners. employees and the communities where we operate.We are a happy team in our workplace as we build a sustainable and profitable business.

Culture and Values A PCPPI employee has the Passion to succeed. prioritizes Service. . Excels in what he does. Professional in all his dealings. and treasures his Integrity and that of the Company.

Communications and Legal Director Director Senior Vice President and Senior General Manager for Central Luzon Operations. Employee and Industrial Relations.Structure Chief Executive Officer President Executive Vice President for National Sales Operations Executive Vice President & Chief Strategy Officer Senior Vice President & Chief Financial Officer Director Director Director Director Senior Vice President for Manufacturing and Logistics Senior Vice President for Human Resources. Naga Plant Vice President & Senior General Manager for Mindanao Vice President & Senior General Manager for Visayas . North Luzon Operations. Cagayan Valley Operations and Pepsi University Vice President & Senior GM for Metro Sales Operations. Southern Tagalog Regional Office.

. This divisional structure is appropriate to PCPPI management to find some synergy among divisional activities through the use of committees and horizontal linkages.PCPPI has a divisional structure model headed by their Chairman of the Board and CEO Hwang Chung and Partha Chakrabarti as President.

.Resources PCPPI takes pride in the establishment of support systems and processes to ensure the development of its employees through learning and skills trainings facilitated by qualified and competent teachers and professionals.

‡ March 25. 2005 ‡ Provide continuing education to PCPPI Employees focusing on the key function areas of MAKE-SELLDELIVER ‡ Enhance basic day-today capability of frontline Employees. especially Sales Employees .

. mentors and trainers from PCPPI. PI and recognized educational establishments and learning centers.‡ Enhance managerial and leadership abilities of managers and employees with potential ‡ Instill Company values and Culture in all Employees ‡ Maintain a pool of certified educators.

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Strategies Pepsi-Cola Products Philippines. using the fast expanding health and wealth sector as their growth factor. strong performance was driven by the successful implementation of their strategic moves which include effectively preserving and defending their market share in carbonated soft drinks lines cola and non-cola and aggressively tapping the bright growth prospects of the non-carbonated beverages product lines. Inc. .

Financial Statements Pepsi-Cola Coca-Cola .

4%.3%.Source: AC Nielsen as cited by 2TradeAsia. and the remaining 10.9% is shared by the other small players. controls about 48. . Coca Cola Bottlers Philippines Inc. followed by Cosmos Bottlers Corporation with 23. January 2008 According to an industry report.4% of the market for carbonated soft drinks in the country. PCPPI with 17.

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Large market share Acquisitions and alliances STRENGTHS Customer loyalty Purchasing economies of scale Worldwide brand recognition Huge distribution network Strong market position Strong brand portfolio Strong growth in revenues and profits .

Business concentration WEAKNESSES Smaller market share than Coca-cola Inability to substantially product differentiate Hard to compete with Cocacola strong brand identity and customer loyalty .

Growing bottled water market OPPORTUNITIES Establishing of new branches in the country Promoting a cleaner environment Reducing costs for the company Generating income for farmers Growing population in the Philippines Adapting to market trend .

Pepsi will lose market share if rivals adapt to market trends faster .Sluggish growth of carbonated beverages T H R E AT S High oil prices High level of competition with main rival.

Strengths ‡ can be described as among the leading company worldwide ‡ the company holds large market share and has allied with South Korea s number one beverage company. the Lotte Chilsung Beverage Corporation ‡ continuous customer loyalty and strong brand portfolio ‡ PCPPI continues to increase their distribution network and market location. .

Weakness ‡ the company cannot claim of being in the top most of the beverage company due to their rival Coca-Cola ‡ Coca-Cola has greater market share worldwide and also has a strong brand identity and same customer loyalty to its market .

the company may also be able to extend to other products such as Bottled Water and sees opportunities of making health drinks and be an advantage for them to be a socially responsible producer. .Opportunities ‡ plant expansion in different locations of the country ‡ reducing cost can also be expected thru some ways such as building Biomass Facilities for Renewable Energy ‡ with the growing population.

‡ if the company will not grab the present opportunities their rivals might be far ahead to them and probably will gain more market share . this entails an increase in shipping and handling cost.Threats ‡ there might be a decline or slow increase of demands for carbonated beverages ‡ continuous oil price hike.

They have been beaten badly in some markets.Alternative Courses of Action ‡ Pepsi should focus on increasing sales nationally to compete effectively with Coke. and need to focus more on untapped areas ‡ Continue to diversify their beverage selection through acquisitions. ‡ combat the decreased interest in cola ‡ a need to ensure that they can properly manage all of these acquired companies and should divest those that show limited potential .

Alternative Courses of Action ‡ Develop Imaginative and trendy advertising. ‡ To combat the weakness of their current international strategies . ‡ Capitalize on their aggressive corporate culture in overseas dealings. ‡ Make socially aware campaigns.

both through internal growth and carefully selected acquisitions. . the best recommendation is to continue addressing the opportunities and risks of the global marketplace and concentrate the resources on growing the business.Recommendation Based on the research.

to obtain more target customers and distribution networks develop the advertisements and making it trendier can be a better start pConduct a study whether having a Renewable Source of energy will help the company in reducing cost.Implementation Plan pPrioritize having aggressive promotion on the market. .

pFocus on how to maximize sales and reduce cost. pLocate more strategic location for distribution.Implementation Plan pCreate a feasibility study if making new product lines can be profitable for the company. .

‡ The finance department should interpret the financial statements of the company if there is probable increase in profit due to different factors (reduce in cost or increase in sales). .Evaluation and Control ‡ Conduct a market research whether there is a change in brand patronization of the market.

Evaluation and Control Evaluation and Control ‡ Each of the location supervisor must observe diligent and accurate reports of their distribution network. ‡ Developing better product and packaging. ‡ Make sure that making new product line can be accepted by the market. .

. they still cannot out overpower their number one rival. performs a great job in manufacturing. Confident of having greater investments from foreign big investors. . selling and distributing their products. they foresee in the future that their goal to beat them will be possible.Conclusion The researchers conclude that the Pepsi-Cola Products Philippines Inc. the company may be able to increase its production and engaged in other types of products. Although at present. CocaCola Co.

If the company will focus more on taking actions to use this opportunities. probably the company will have more solutions than having problems. . the researchers conclude that there are lots of opportunities coming for the company.Conclusion Furthermore.

Having a systematic evaluation and controlling will give the company their vision of being in the top among the beverage companies not just nationally but also worldwide. .Conclusion Lastly. the researchers have assessed those factors in which the company should focus more and those which they should attend to as soon as possible. knowing the internal and external environment of the company.

Thank You! .